Start by making the caramel. Melt the butter in a saucepan over medium heat and whisk in the brown sugar. Once the sugar melts, add the cream and vanilla. Whisk together and bring the caramel to a bubble. Let it bubble steadily and thicken for 10 minutes while stirring frequently. Then remove from the heat.
Lay out some parchment paper on your counter. Then one by one dunk the pretzels in the caramel. Let sit and dry for 15 minutes.
Next melt the chocolate. First combine 1 tablespoon cream and the chocolate chips in a pot over medium low heat. Once melted, add the nutella and stir until just melted. Then add all of the pretzels and stir to coat them in chocolate.
Pour the chocolate covered pretzels in a thin layer over the parchment and let them dry for 5 minutes. Use a spatula to break up any pretzels that are stuck together.
Place the chocolate covered pretzels in a large ziploc bag and pour the powdered sugar in. Shake to evenly coat the pretzels with the sugar.
Pour into a bowl to serve or package up to give as a gift.